Shifting of responsibilities
In January 1997, the province announced it would hand over funding responsibility for GO Transit to the
Greater Toronto Area municipalities (which consist of the City of Toronto, and the Regions of Halton, Peel, York, and Durham) and the neighbouring Region of Hamilton-Wentworth (which became the new City of Hamilton on 1 January 2001). In exchange, the province would assume certain other funding responsibilities from municipal governments.
A year later, on 1 January 1998, the GTA municipalities and Hamilton-Wentworth (now the city of Hamilton) began to fund GO Transit, cost-sharing all of GO's capital expenses and any operating costs that are not recovered through passenger fares and other revenue. On 1 January 1999, a new municipal agency created by the province came into being: the Greater Toronto Services Board (GTSB), composed of regional chairs, municipal mayors, and local councillors from the GTSB's service area. GO Transit transferred over to the municipal sector as an arm of the GTSB (Toronto Area Transit Operating Authority) on August 7, 1999, thus completing the process that had begun with the funding change of 1998.
In 2000, all day GO Train service was restored from Burlington to Whitby and finally brought to Oshawa (although weekend & holiday Lakeshore GO Train service was only provided between Pickering and Oakville).
On September 27, 2001, Premier Harris announced that the provincial government would take back responsibility for GO Transit, and put $3 billion into public transit in Ontario.
The
GO Transit Act, 2001 was passed by the Ontario Legislature on December 5, 2001. Since January 1, 2002, GO Transit is no longer the responsibility of the municipalities of the Greater Toronto Area and Hamilton. GO has returned to provincial responsibility as a
Crown Corporation, and the Greater Toronto Services Board no longer exists.